Small Business Program Name Change
DFARS Case 2008-D001
Final Rule
PART 219—SMALL BUSINESS PROGRAMS
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219.201 General policy.
(d) For the defense agencies, the director of the Office of Small and Disadvantaged Business Utilization [Small Business Programs] must be appointed by, be responsible to, and report directly to the director or deputy director of the defense agency.
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(f) The Directors, Office of Small and Disadvantaged Business Utilization [Small Business Programs], of the military departments and defense agencies are responsible for determining whether use of the price evaluation adjustment to achieve a small disadvantaged business goal has caused non-SDB firms in a particular North American Industry Classification System Industry Subsector to bear an undue burden or other inappropriate effect. A copy of each determination shall be forwarded to the Office of Small and Disadvantaged Business Utilization [Small Business Programs], Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics), simultaneously with submittal to the Office of Federal Procurement Policy.
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SUBPART 219.10—SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM
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219.1007 Procedures.
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(b)(1) The Director, Small and Disadvantaged Business Utilization [Small Business Programs], Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) (OUSD(AT&L)), will determine whether reinstatement of small business set-asides is necessary to meet the agency goal and will recommend reinstatement to the Director of Defense Procurement and Acquisition Policy (OUSD(AT&L)). Military departments and defense agencies shall not reinstate small business set-asides unless directed by the Director of Defense Procurement and Acquisition Policy.
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SUBPART 219.71—PILOT MENTOR-PROTEGE PROGRAM
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219.7102 General.
The Program includes—
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(d) * * *
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(ii) A separate contract, upon written determination by the cognizant Component Director, Small and Disadvantaged Business Utilization (SADBU) [Small Business Programs (SBP)], that unusual circumstances justify reimbursement using a separate contract; or
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219.7103 Procedures.
219.7103-1 General.
The procedures for application, acceptance, and participation in the Program are in Appendix I, Policy and Procedures for the DoD Pilot Mentor-Protege Program. The Director, SADBU [SBP], of each military department or defense agency has the authority to approve contractors as mentor firms, approve mentor-protege agreements, and forward approved mentor-protege agreements to the contracting officer when funding is available.
219.7103-2 Contracting officer responsibilities.
Contracting officers must—
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(d) Modify applicable contract(s) to establish a contract line item for reimbursement of developmental assistance costs if—
(1) A DoD program manager or the cognizant Component Director, SADBU [SBP], has made funds available for that purpose; and
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(e) Negotiate and award a separate contract for reimbursement of developmental assistance costs only if—
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(3) The cognizant Component Director, SADBU [SBP], has made a determination in accordance with 219.7102(d)(1)(ii).
(f) Not authorize reimbursement for costs of assistance furnished to a protege firm in excess of $1,000,000 in a fiscal year unless a written determination from the cognizant Component Director, SADBU [SBP], is obtained.
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PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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252.219-7004 Small Business Subcontracting Plan (Test Program).
As prescribed in 219.708(b)(1)(B), use the following clause:
SMALL BUSINESS SUBCONTRACTING PLAN (TEST PROGRAM)
(APR 2007[AUG 2008])
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(c) The Contractor shall submit Standard Form (SF) 295, Summary Subcontract Report, in accordance with the instructions on the form, except¾
(1) One copy of the SF 295 and attachments shall be submitted to Director, Small and Disadvantaged Business Utilization [Small Business Programs], Office of the Deputy Under Secretary of Defense (International and Commercial Programs) [(Acquisition, Technology, and Logistics)], 3061 Defense Pentagon, Room 2A338, Washington, DC 20301-3061 [201 12th Street South, Suite 406, Arlington, VA 22202]; and
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APPENDIX I—POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM
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I-102 Participant eligibility.
(a) To be eligible to participate as a mentor, an entity must be—
(1) An entity other than small business, unless a waiver to the small business exception has been obtained from the Director, Small and Disadvantaged Business Utilization (SADBU) [Small Business Programs (SBP)], OUSD(AT&L), that is a prime contractor to DoD with an active subcontracting plan; or
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(f) If the mentor firm is suspended or debarred while performing under an approved mentor-protege agreement, the mentor firm—
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(3) Must promptly give notice of its suspension or debarment to its protege firm and the cognizant Component Director, SADBU [SBP].
I-103 Program duration.
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(b) Mentors incurring costs prior to September 30, 2013, pursuant to an approved mentor-protege agreement may be eligible for—
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(3) Reimbursement pursuant to entering into a separate DoD contract upon determination by the cognizant Component Director, SADBU [SBP], that unusual circumstances justify using a separate contract.
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I-105 Mentor approval process.
(a) An entity seeking to participate as a mentor must apply to the cognizant Component Director, SADBU [SBP], to establish its initial eligibility as a mentor. This application may accompany its initial mentor-protege agreement.
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(c) A template of the mentor application is available at: www.acq.osd.mil/sadbu/mentor_protege [http://www.acq.osd.mil/osbp/mentor_protege/].
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I-107 Elements of a mentor-protege agreement.
Each mentor-protege agreement will contain the following elements:
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(j) A program participation term for the agreement that does not exceed 3 years. Requests for an extension of the agreement for a period not to exceed an additional 2 years are subject to the approval of the cognizant Component Director, SADBU [SBP]. The justification must detail the unusual circumstances that warrant a term in excess of 3 years;
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I-108 Submission and approval of mentor-protege agreements.
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(c) The mentor-protege agreement must be approved by the cognizant Component Director, SADBU [SBP], prior to incurring costs eligible for credit.
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(e) Credit agreements that are not associated with an existing DoD program and/or component will be submitted for approval to Director, SADBU [SBP], Defense Contract Management Agency (DCMA), via the mentor’s cognizant administrative contracting officer.
(f) A prospective mentor that has identified Program funds to be made available from a DoD program manager must provide the information in paragraph (a) of this section through the program manager to the cognizant Component Director, SADBU [SBP], with a letter signed by the program manager indicating the amount of funding that has been identified for the developmental assistance program.
I-109 Reimbursement agreements.
The following provisions apply to all reimbursable mentor-protege agreements:
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(c) The primary forms of developmental assistance authorized for reimbursement under the Program are identified in I-106(d). On a case-by-case basis, Component Directors, SADBU [SBP], at their discretion, may approve additional incidental expenses for reimbursement, provided these expenses do not exceed 10 percent of the total estimated cost of the agreement.
(d) The total amount reimbursed to a mentor firm for costs of assistance furnished to a protege firm in a fiscal year may not exceed $1,000,000 unless the cognizant Component Director, SADBU [SBP], determines in writing that unusual circumstances justify reimbursement at a higher amount. Request for authority to reimburse in excess of $1,000,000 must detail the unusual circumstances and must be endorsed and submitted by the program manager to the cognizant Component Director, SADBU [SBP].
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I-110 Credit agreements.
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I-110.2 Credit adjustments.
(a) Adjustments may be made to the amount of credit claimed if the Director, SADBU [SBP], OUSD(AT&L), determines that—
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(b) The mentor firm must be afforded the opportunity to explain the decline in small business subcontract awards before imposition of any such limitation on credit. In making the final decision to impose a limitation on credit, the Director, SADBU [SBP], OUSD(AT&L), must consider¾
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(c) The decision of the Director, SADBU [SBP], OUSD(AT&L), regarding the imposition of a limitation on credit will be final.
I-111 Agreement terminations.
(a) Mentors and/or proteges must send a copy of any termination notices to the cognizant Component Director, SADBU [SBP], that approved the agreement, and the DCMA administrative contracting officer responsible for conducting the annual review pursuant to I-113.
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I-112 Reporting requirements.
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I-112.2 Program specific reporting requirements.
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(d) A recommended reporting format and guidance for its submission are available at: www.acq.osd.mil/sadbu/mentor_protege [http://www.acq.osd.mil/osbp/mentor_protege/].
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(g) Progress reports must be submitted—
(1) For credit agreements, to the cognizant Component Director, SADBU [SBP], that approved the agreement, and the mentor’s cognizant DCMA administrative contracting officer; and
(2) For reimbursable agreements, to the cognizant Component Director, SADBU [SBP], the contracting officer, the DCMA administrative contracting officer, and the program manager.
I-113 Performance reviews.
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(b) A checklist for annual performance reviews is available at www.acq.osd.mil/sadbu/mentor_protege [http://www.acq.osd.mil/osbp/mentor_protege/].
Small Business Program Name Change
Procedures, Guidance, and Information
PGI 219.6—CERTIFICATES OF COMPETENCY
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PGI 219.602-3 Resolving differences between the agency and the Small Business Administration.
(a)(3)(A) If the contracting officer believes the agency should appeal, the contracting officer shall immediately inform the departmental director of the Office of Small and Disadvantaged Business Utilization [Small Business Programs] and shall send the director, through departmental channels—
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PGI 226.1—INDIAN INCENTIVE PROGRAM
PGI 226.103 Procedures.
(1) Submit a request for funding of the Indian incentive to the Office of Small and Disadvantaged Business Utilization [Small Business Programs], Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) (OUSD(AT&L)SADBU[SBP]), 1777 North Kent Street, Suite 9100, Arlington, VA 22209 [201 12th Street South, Suite 406, Arlington, VA 22202].
(2) Upon receipt of funding from OUSD(AT&L)SADBU[SBP], issue a contract modification to add the Indian incentive funding for payment of the contractor’s request for adjustment as described in the clause at DFARS 252.226-7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.
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